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KAMPALA, March 03, 2015— Uganda's urban population will increase from six million in 2013 to over 20 million in 2040. Policy makers need to act now to ensure that this rapid urbanization is managed we... Show More +ll, so it can contribute to Uganda’s sustainable and inclusive growth, a report released today by the World Bank Group shows.For the first time, the report compares data on urban areas and their populations in a consistent manner across Uganda, providing governments and local leaders with analyses to improve planning and coordination to deliver better services, jobs and opportunities, making cities more competitive.“The typical Ugandan city has grown rapidly, but without sufficient policy coordination. As a result, urbanization has not necessarily resulted in increased productivity, with the majority of jobs created involving low productivity activities,” said Hon. Daudi Migereko, Minister of Lands, and Housing and Urban Development. “This report will help government get a better picture and take action on how to spur the economy from the lackluster growth performance experienced over the past half-decade, to a higher growth path that can catapult the country into middle income status.”The Fifth Uganda Economic Update, titled: “The Growth Challenge: Can Ugandan Cities get to Work?” focusses on urbanization and notes that while the majority of the population is still concentrated in rural areas, non-agricultural economic growth and jobs are concentrated in urban areas. The report shows that while cities can help propel growth, the speed of urbanization is challenging and can lead to congestion and strain infrastructure, lowering productivity.“By managing the urbanization process effectively, Uganda will be more likely to achieve middle income status by 2040. However, current patterns of growth pose a significant challenge,” said Philippe Dongier, the Country Director for the World Bank Group for Uganda, Tanzania and Burundi. “Urban population growth multiplies the number of challenges already facing urban areas and hinders their ability to be the sources of growth, to create productive jobs and to provide decent housing to urban residents.”The Update has been prepared to assist government in ensuring that its cities are ready to accommodate the increasing number of residents expected to settle in urban areas and able to facilitate the growth of business enterprises, thereby creating opportunities for productive employment for a greater proportion of city residents."Cities have the potential to propel growth, attracting capital, spurring innovation, providing higher productivity jobs. Services can be provided more cost-effectively, improving access for all,” said Somik Lall, Lead Urban Economist. “To reap these benefits, urban growth needs to be managed well by planning for land use and basic services, connecting to make a city’s markets accessible, and financing to meet infrastructure needs.”“To ensure the development of functional cities, the public sector will require the coordination of a range of different types of investment, including investment in physical planning for buildings and the provision of transport, housing and social services,” said Rachel Sebudde, Senior Economist and Lead author of the report. “Each layer faces its own coordination challenges. It is better to anticipate and plan for this at the very early stages of the urbanization process, as it becomes very difficult to correct mistakes retrospectively.”Policy makers at national and municipal levels have an important role to play in ensuring that urbanization is sustainable and inclusive by ensuring that land and property rights are conducive for increasing economic density of cities. They will also have to improve mobility through better transport infrastructure and systems, as well as improve living conditions through better housing policies. Furthermore, it will be critical to improve access to social services such health and education; and levelling access to, and quality of, public services such as water and sanitation services.Urbanization in Numbers6.4 million Ugandans live in urban areas70 percent of non-agricultural GDP in Uganda is generated in urban areas54 percent of people living in Central region are residing in urban areasCentral region has the highest number of people living in urban areas, but the Eastern region is the fastest urbanizing region during the first decade of 2000sKampala is home to 31 percent of Uganda’s urban population69 percent of Uganda’s urban population live in small cities with less than 500,000 people21 million people will live in urban areas in Uganda by 2040By 2013, 38 percent of the urban population was connected to the electricity gridThe number of firms engaged in real estate and business services in Kampala is 11 times the overall average across districtsOver the first decade of the 2000s, cities accounted for 36 percent of overall job growthWalking is the main mode of transport in Kampala, and 70 percent of the residents of Kampala walk to work80 percent of the global economic activity is generated in cities Show Less -

ACCRA, March 3, 2015 – Twenty Ghanaian high-potential startups have concluded the first national bootcamp designed to promote local entrepreneurship and innovation in clean technologies. The initiativ... Show More +e was organized last week by the soon-to-be-launched World Bank/infoDev’s Ghana Climate Innovation Center (GCIC). The bootcamp aimed to identify and launch growth-oriented Ghanaian entrepreneurs and new ventures involved in developing profitable and locally relevant solutions to climate change.Several studies, including the World Bank’s report ‘Economics of Adaption to Climate Change’ and Ghana's National Climate Change Policy Framework, have stressed how significant the impact of climate change will be on Ghana’s economy, people and development. Crop yields are predicted to decline by 7% by 2050 due to higher temperatures, while sea levels are expected to rise over one meter this century, causing the erosion of 1,120 square kilometers of land.“Ghana is highly vulnerable to the impacts of climate change and as such, its prospects for continuous growth will depend on the country’s ability to build competitive and climate-resilient industries,” said Yusupha B. Crookes, World Bank Country Director. “In line with the National Climate Change Policy, by accelerating the development of local clean technology companies the Ghana Climate Innovation Center will help reduce the country’s vulnerability to climate change, while also creating jobs and promoting investments in new clean technologies.”The twenty clean-tech companies in the bootcamp were competitively selected after a nation-wide campaign that led to almost 90 applications in a few weeks. Only the companies with the highest level of innovation, technical expertise, and potential for commercial success were invited to the bootcamp. The bootcamp consisted of an intense two-day training program designed to refine the entrepreneurs’ business concepts and a pitching contest held in front of a panel of local investors and industry experts.The bootcamp participants represented some of the most promising clean technology sectors in Ghana’s green growth agenda, including solar energy, biofuels, waste and water management.“With the support from our mentor and various experts, we asked ourselves questions that we had not previously thought about,” said Sylvia Akotia, one of the entrepreneurs who participated in the bootcamp and won one of the seven awards of the pitching competition. “Having an external perspective has helped us identify our niche, our unique proposition, and the challenges we need to address to move forward with our business.”The bootcamp is the first of a series of activities that the Ghana Climate Innovation Center will implement to support the country’s National Climate Change Policy. After its official inauguration in mid-2015, the center will provide up to 200 local companies with business facilities and a targeted suite of services that includes early-stage financing, technology commercialization, business development and capacity building support.Supported by the Danish International Development Cooperation Agency (DANIDA) and the Government of The Netherlands, the GCIC aims to assist more than 20,000 households to increase resiliency to climate change through improved access to potable water, availability of clean energy, and more sustainable agriculture techniques. Show Less -

WASHINGTON, March 3, 2015—The World Bank Group today announced the creation of its first External Advisory Panel for Diversity and Inclusion, which will provide a conduit between the World Bank Group ... Show More +and the global community, serve as a sounding board, and advise on matters relating to diversity and inclusion.While conducting a study of the diversity and inclusiveness of the World Bank Group’s workforce, an organizational review of external best practices found that the institution should explore new ways to become more diverse and could benefit from an outside perspective. The World Bank Group, in selecting members of an External Advisory Panel, sought leaders who had demonstrated success in both diversity and inclusion in the workplace.The External Advisory Panel will review and advise President Jim Yong Kim and his senior management team on the organization’s strategies and measures to achieve a diverse and inclusive workplace. They will also give counsel on how to address internal and external challenges that impact the Bank Group’s diversity and inclusion efforts. Finally, the panel will provide an external perspective to balance the strategies and views of the World Bank Group’s internal Council on Diversity and Inclusion.As a global organization with staff from more than 170 countries, the World Bank Group is committed to fostering and strengthening diversity and inclusion in its work and workplace. The following six esteemed individuals have accepted to serve as members of the External Advisory Panel for Diversity and Inclusion:Elizabeth Adu, Former World Bank Group Director and Deputy General CounselRichard Bernal, Counselor for Jamaica, Inter-American Development BankJulius Coles, Director, Andrew Young Center for Global Leadership, Morehouse CollegeIndra K. Nooyi, Chairman and Chief Executive Officer, PEPSICOPaula Yacoubian, CEO of Integrated CommunicationsKenji Yoshino, Chief Justice Earl Warren Professor of Constitutional Law, New York UniversityThese individuals are known for their commitment and contributions to diversity and inclusion, and the transformational impact they have had in their organizations and/or the broader community.In announcing the new initiative, World Bank Group President Jim Yong Kim said, “I look forward to the panel’s engagement with us as we build an even more diverse and inclusive workplace. For us to provide the best development solutions to our clients and thus be the best place to work in development, these principles must be embedded into all that we do. I’m sure we’ll benefit from the richness of perspectives and ideas of these leaders.” About the World Bank GroupThe World Bank Group plays a key role in the global effort to end extreme poverty and boost shared prosperity. It consists of five institutions: the World Bank, including the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Working together in more than 100 countries, these institutions provide financing, advice, and other solutions that enable countries to address the most urgent challenges of development. For more information, please visit www.worldbank.org, www.miga.org, and ifc.org. Show Less -

Washington, March 2, 2015 – The World Bank Board of Directors today approved a US$200 million loan to support Morocco’s competitiveness strategy and encourage reforms for productivity and growth. The ... Show More +Development Policy Loan (DPL) reform program addresses needs critical for simplifying procedures for business and enforcing rules for competition to create a more enabling and transparent business environment. These reforms are expected to energize investment and trade, and help create high-value jobs and a more vibrant private sector in Morocco.Over the past decade, Morocco has carried out a series of reforms to update its regulatory framework and attract more foreign investment. The reforms have made a significant impact on Morocco’s business environment. By modernizing its commercial framework, and easing regulatory procedures over the past few years, Morocco has made a significant leap in the 2015 edition of Doing Business, ranking 71 out of 189 economies, compared to 94th in 2012.“Morocco made good headway in improving its overall competitiveness framework and carrying out business environment reforms,” said Simon Gray, World Bank Country Director for the Maghreb. “Yet bolder reforms, and further diversification of the Moroccan economy, will help set the country on a stronger path to join other emerging countries.”The second economic competitiveness DPL is designed precisely to boost Morocco’s efforts. The loan approved today will continue to support reforms launched under the first loan in 2013, aimed notably at simplifying procedures for creating and running a business. It will also support the upgrading of Morocco’s trade policy framework to put them in line with the country’s international commitments. The DPL supports economic governance reforms, too, by strengthening the role and prerogatives of the Competition Council and National Commission for the Business Environment—two key Moroccan economic agencies.“The operation is crucial to developing an investment climate that responds to the needs of all types of companies, in particular small and medium ones, to improve Morocco’s diversification and export capacity,” says Philippe de Meneval, World Bank Project Team Leader. “Furthering these reforms through sustained support for their implementation will give Morocco the potential for greater competitiveness in the medium to longer term.”The operation focuses on cross-cutting reforms and actions linked to the trade and investment constraints, identified by public and private sector stakeholders as limiting the impact of government efforts on the performance of various economic sectors. Improvements to transparency and governance is another cornerstone of the current DPL: These should create a more level playing field, especially for smaller enterprises, by reducing the amount of discretion available in how procedures are applied to businesses, and by lifting barriers to investment. Show Less -

WASHINGTON, DC, March 02, 2015 – The World Bank today approved a $500 million loan for the MSME Growth Innovation and Inclusive Finance Project to improve access to finance for Micro, Small and Medium... Show More + Enterprises (MSMEs) working in the manufacturing and services sector, including startups and early stage ventures.In India, MSMEs account for more than 80 percent of total industrial enterprises, produce over 8000 value-added products and employ an estimated 60 million people. It contributes around 45 per cent to manufacturing output and about 40 percent to exports, both directly and indirectly. In addition, over 50 percent of MSMEs are rural enterprises and widely distributed across low-income states making them an important sector for promoting economic growth and poverty reduction.However, lack of adequate finance is one of the biggest challenges facing the MSME sector. Financial institutions have limited their exposure to the sector due to a higher risk perception, information asymmetry, high transaction costs and the lack of collateral. The MSME census of 2006-07 estimated that about 87 percent of MSMEs did not have any access to finance and were self-financed. Credit towards micro and small enterprises represent only around 13-15 percent of formal financial institutions portfolio.The project will support MSMEs through direct financing by the Small Industries Development Bank of India or SIDBI, an apex financial institution for promotion, financing and development of MSMEs in India, as also through Participating Financial Institutions (PFIs) across three components. These include support to startup debt financing and risk capital as well as support to service and manufacturing sector financing models.“With eight million people entering the labor force every year, MSMEs have the potential to create many new, innovative jobs. However, for these ideas to take shape, MSMEs will need easier access to finance. This project will develop innovative products that address such constraints and help them achieve their true potential,” said Onno Ruhl, World Bank Country Director in India.The project’s first component will support SIDBI in developing, innovating and scaling up its startup debt financing program as well as support entry of potential participating financing institutions (PFIs). The India’s startup ecosystem is currently one of the fastest growing in the world and the third largest startup base with 3,100 startups (after the United States with 41,500 start-ups and the United Kingdom with 4,000). While there has been incredible growth in equity financing in the Indian ecosystem, debt financing is non-existent for the majority of the vast growing startup enterprises which severely constrains the necessary rapid growth startups need to survive. The project will seek to address this gap and demonstrate financial products that can unlock the potential of India’s startups and early stage ventures.Its second component will support the financing of MSME enterprises in the services sector. Although the structure of the Indian economy is markedly shifting towards services (65 percent of Indian GDP), enterprises in this sector continue to face challenges in accessing formal finance mainly due to lack of physical assets to provide as collateral. Financial depth (credit to GDP) for this sector is a mere 25 percent (RBI). In an attempt to address this issue, SIDBI has introduced new products and considering their potential to grow, this project will support scale up of innovative products which are better tailored for MSMEs in the service sector, including franchise financing. The project will also support MSMEs in the manufacturing sector through innovative financial products including Loan Extension Services (LES) and cluster financing – including women-led clusters. Particular focus will be to expand manufacturing activity in financially underserved areas, including low-income states especially through refinancing, as banks and other PFIs have a deeper network in these states.“Access to formal financing is challenging as financial institutions are yet to develop appropriate risk assessment frameworks to assess enterprises that fall under the MSME sector. Traditional banking based on collateral lending does not cater well to these large, innovative and dynamic segments of the Indian economy. Thus, despite its contribution to GDP, its potential is not fully realized and many firms are unable to grow sufficiently. The introduction of customized products with innovative financing mechanisms will help unlock the market for lending to MSMEs at all stages of growth, including start-up firms,” said Niraj Verma, Lead Financial Sector Specialist and the Task Team Leader for the project. The loan, from the International Bank for Reconstruction and Development (IBRD), has a 5-year grace period, and a maturity of 10 years. Show Less -

WASHINGTON, March 2, 2015 —The World Bank Group’s Board of Executive Directors today approved a US$40 million loan to help enhance the competitiveness and management capacity of small and medium sized... Show More + enterprises (SMEs) in Kazakhstan.“Small and medium sized enterprises are widely identified as important sources of economic growth and employment and, therefore, an essential foundation for shared prosperity,” said Ludmilla Butenko, World Bank Country Manager for Kazakhstan. “The project is expected to increase the competitiveness of Kazakhstani SMEs to contribute to diversification of the economy by reducing its reliance on extractive industries.”Lack of professional and management skills as well as limited market linkages are among key obstacles the Kazakhstan’s private sector is facing today. The SME Competitiveness Project is aimed at strengthening the management capacity of SMEs to grow and create more and better jobs. For this, the existing SME advisory programs will be enhanced in terms of quality and methodology in line with international standards. Several hundred business consultants will be trained and certified to deliver in turn professional consulting to several thousand entrepreneurs and SMEs.The project will also focus on increasing market linkages for SMEs in non-extractive sectors with a market-based growth potential. The new linkages between SMEs and large buyers will provide entrepreneurs with an increased access to markets. To facilitate the process, the project aims at piloting a supplier development program and enhancing the capacity of policy making authorities in developing competitive sectors in emerging areas of the economy. The evidence-based policy making will be strengthened through improved existing monitoring and evaluation frameworks and public-private dialogue.All these activities will result in increased firm productivity and revenues as well as overall contribution of SMEs to the country economy.The implementation of the five-year project (2015-2020) will start after the country approval process is completed.The SME Competitiveness Project will be financed through a US$40 million IBRD loan, with a 15-year maturity period and a 5-year grace period, with US$6 million in co-financing from the Government of Kazakhstan. Show Less -

THIMPHU, BHUTAN, February 27, 2015—The World Bank Group (WBG) and the South Asian Association for Regional Cooperation Development Fund (SDF) announced that they have forged a multi-year partnership t... Show More +o design and implement SDF’s Social Enterprise Development Program (SEDP) in eight SAARC countries. The partnership aims to improve the quality and delivery of basic services to the poorest and underserved populations across South Asia by combining finance, global knowledge, and capacity development support for 100 social enterprises that will receive grants of USD 100,000 to 250,000 per enterprise. Thereafter, SDF will provide finance to these enterprises to enable them to scale their impact.“With SAARC Development Fund as a strategic partner in the South Asia region, the World Bank Group has a great opportunity to collaborate and connect countries with global knowledge and learning to improve service delivery to the poor,” said Sanjay Pradhan, Vice President, Leadership, Learning and Innovation, World Bank Group. “We believe that SDF can play a unique role in identifying and scaling of innovative social enterprises in the eight countries in South Asia, as well as enabling their replication.”Social enterprises use private sector approaches to improve human well-being and are often highly efficient in delivering services in hard to reach communities. The WBG will leverage its 15 years of experience in implementing the Development Marketplace, a program that identifies and strengthens social enterprises and replicates those initiatives that have proven to be successful.“From mobile clinics to community banking, South Asia is home to many social enterprises that are doing a great job at filling service delivery gaps that cannot be met through traditional means,” said Mr. Karma, CEO of SDF. “We are thrilled to partner with the World Bank Group that has a unique experience in supporting social enterprises to maximize the positive impact they can have on society.”About the World Bank Group’s Development MarketplaceThe World Bank Group’s Development Marketplace (DM) is a multifaceted program dedicated to identifying, supporting, and scaling innovative business models from social entrepreneurs in order to improve service delivery to the low-income population, thereby contributing to the WBG’s twin goals of ending extreme poverty and boosting shared prosperity. The program leverages a competition platform to help surface innovative business models and provides knowledge and capacity building to governments and social entrepreneurs to enhance their ability to reach the most marginalized segments of society. About the South Asian Association for Regional Cooperation Development FundThe South Asian Association for Regional Cooperation (SAARC) is an economic and regional organization of eight countries in the South Asian region: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. Its SAARC Development Fund (SDF) is the umbrella financial institution of SAARC that engages in the implementation of projects and programs under three funding windows: social, economic, and infrastructure. Through the SDF, SAARC aims to fulfill many of the greater development goals throughout the South Asia region. Show Less -

WASHINGTON, February 27, 2015 – The World Bank Group’s (WBG) Board of Executive Directors today approved a total of US$75.5 million to improve the management of fisheries and increase the economic ben... Show More +efits from fishing-related activities for families living in the coastal communities of the South West Indian Ocean region.The First South West Indian Ocean Fisheries Governance and Shared Growth Project (SWIOFish1) will help improve regional cooperation for the nine African countries that border the waters of the South West Indian Ocean.“Fisheries are a key contributor to food security, nutrition and job creation for rural coastal populations of the South West Indian Ocean, who are among the poorest and most vulnerable in the region,” said Colin Bruce, World Bank Director of Regional Integration for the Africa Region. “Promoting sustainable use of fisheries, linking smaller operators to new value chains and improving regional cooperation over shared resources will boost shared prosperity in these countries and the entire region.”The coastal populations of the South West Indian Ocean region suffer from challenges such as too little economic growth, hunger, poverty and exposure to climate change impacts. Fish stocks in the region are increasingly facing risks of overexploitation or depletion from overfishing by industrial vessels and artisanal fishers.The project will initiate regional discussions and cooperation to develop a regional fisheries management program focusing on reducing pressure on the fishing ecosystems and helping countries address shared challenges. Safeguarding fish resource productivity and developing the value chain for fish production will expand the fishers’ livelihoods as a step towards reducing poverty.Financed by $75.5 million from the International Development Association (IDA)*, the WBG’s fund for the poorest, and $15.5 in co-financing trust funds form the Global Environment Facility (GEF), the project will support regional coordination and cooperation to improve the management and sustainable development of fisheries in the South West Indian Ocean and will benefit the countries in the South West Indian Ocean Fisheries Commission: Comoros, Madagascar, Mauritius, Seychelles, Somalia, Kenya, Tanzania, Mozambique, South Africa, Yemen and Maldives.Three countries in the region, Comoros, Mozambique, and Tanzania have already taken steps to develop strategies and institutions to improve fisheries management and marine health through other World Bank projects. To leverage these previous investments Comoros will receive $13 million, Mozambique will receive $37 million and Tanzania will receive $36 million to strengthen country-wide institutions and activities, improve fishers’ livelihoods, expand the regional business climate and increase private sector investment in the fishing industry.“Overfishing, including from uncontrolled small-scale fishing, progressively undermines the resource base upon which coastal communities depend,” said World Bank Task Team Leader Xavier F. P. Vincent. “The South West Indian Ocean marine fisheries are part of a larger marine ecosystem shared by all countries of the region. Today’s project will support regional coordination among the countries that border the South West Indian Ocean, improve the health and sustainability of the fisheries.” Show Less -

Patna, February 27, 2015: With more than two-thirds of its population lacking access to electricity, Bihar needs to add significantly to its generation capacity and ramp up investment in transmission ... Show More +and distribution if it is to provide affordable and reliable power to its people, says a World Bank study. More Power to India: The Challenge of Distribution, presented in Patna today is a review of the Indian power sector across key areas of access, utility performance, and financial sustainability. The study, conducted at the request of the Government of India, has identified electricity distribution to the end consumer as the weak link in the sector for almost all Indian states.The power sector in Bihar faces several operational inefficiencies. Accumulated losses of the sector were around Rs 85 billion in 2012. Aggregate technical and commercial (AT&C) losses in distribution are among the highest in the country at around 50 percent in 2013 as against an all India average of 27 percent. Transmission losses were around 4 percent in FY12-13 against the all-India average of around 2.4 percent.Today, Bihar has the lowest per capita consumption of electricity in the country at 144 kWh against a national average of 917 kWh. Its peak deficit at 30 percent is highest among all states. Not much new capacity has been added since 2003 and there is great reliance on central sector allocations.The report notes that several structural issues such as low demand in rural areas, revenues being lower than the cost of providing electricity and lack of incentives for utilities to supply power have been instrumental in electricity not reaching consumers, particularly in rural areas. The commercial viability of rural service delivery needs to be increased to attract investment to the sector. Detailed state-wise electrification plans which delineate the areas which are expected to be connected to the grid and areas that will require off-grid access will assure investors in off-grid generation that their investment will not be rendered obsolete by the unexpected arrival of the grid. Increasing opportunities for productive use of electricity by small and medium enterprises in rural areas can also increase rural consumption, the study suggests.Encouraging developments in the power sector of Bihar include the fact that the state has invested in institutional reforms and efficiency improvements. The Bihar State Electricity Board was unbundled into 5 companies in FY 2013; the Bihar Electricity Regulatory Commission was set up in 2005; Distribution Franchisee for Muzaffarpur, Gaya & Bhagalpur were awarded in 2013; the state joined hands with the central transmission utility, Power Grid, to invest in transmission infrastructure; and collection efficiency has improved over time. The distribution companies in Bihar are also planning to use the public-private partnership (PPP) route to provide electricity for domestic and productive uses, including through mini grids in un-electrified districts. In order to improve the quality and adequacy of supply to its consumers, Bihar needs to set up robust energy audit and accounting mechanisms and build organizational capacity to execute and maintain new capital investments, the study suggests. The state could improve operational and financial efficiency in distribution through a multi-pronged approach – using IT for transparent energy audits across the value chain; adopting some of the innovations in reducing AT&C loss pioneered by private sector entities; ring fencing supply to the agricultural sector with a transparently determined and administered subsidy so that rural areas receive reliable power, while revenue maximizing models are implemented in urban areas; and improving institutional accountability, following examples from states like Gujarat and West Bengal.“Lack of access to power for a large segment of the people and industry in Bihar, coupled with an inefficient, loss-making distribution segment are major constraints to Bihar’s growth. Revitalizing the power sector, by improving the performance of distribution utilities, and ensuring that players in the sector are subjected to financial discipline is the need of the hour,” said Sheoli Pargal, Economic Advisor, World Bank and author of the report.While making an urgent call for change, More Power to India recognizes the many impressive strides that the Indian power sector has made over the years. Generation capacity tripled between 1991 and 2012, boosted by the substantial role played by the private sector. A state-of-the-art integrated transmission grid now serves the entire country. Private distribution utilities in Kolkata, Mumbai, Surat and Ahmedabad, which have been owned and operated by the private sector since before Independence, point to potential gains from private participation. Grid-connected renewable capacity in the country has risen from 18MW in 1990 to 25,856 MW in March 2013. And more than 28 million Indians have annually gained access to electricity between 2000 and 2010.However, according to the study, the financial health of the sector is fragile, limiting its ability to invest in delivering better services Total accumulated losses in the sector stood at Rs 2.88 trillion or 3 percent of GDP in 2013.These losses are overwhelmingly concentrated among distribution companies (discoms) and bundled utilities – State Electricity Boards (SEBs) and the State Power Departments, says the study. Sector losses have led to heavy borrowing – power sector debt reached Rs 5.07 trillion in 2013. More than 40 percent of the loans were made to discoms.Over the last two decades the sector has needed periodic rescues from the central government -- a bailout of Rs 350 billion in 2001 and a ‘restructuring package’ of Rs 1.9 trillion that was announced in 2012.Poor Performance of Distribution Several factors have contributed to the losses in the distribution segment, according to More Power to India. The cost to discoms of purchasing power has risen faster than their revenues have, primarily due to fuel shortages and the need for expensive fuel imports by generators and also due to generation inefficiencies and low capacity utilization of power stations that have pushed up the price of power. Also, tariffs have not kept pace with costs over the years. This has in turn led to an increase in borrowings resulting in increases in interest costs. Finally, there are factors that are well within the control of utilities – such as under-collection of bills and delayed collection of payments, along with the fact that more than one-fifth of electricity purchased is collectively ‘lost’ by the utilities, so does not generate revenues for them. Projections show that even if tariffs rise 6 percent per year to keep up with the cost of supply, annual losses in 2017 will likely amount to Rs 1,253 billion (US$ 27 billion).Mounting Subsidies: High Opportunity Cost, Weak TargetingUtilities face pressure to provide below-cost power to agricultural and rural residential consumers for which they are reimbursed through subsidy payments by state governments. Since 2003, in fact, subsidies booked have grown by 17 percent per year, and subsidies received by 12 percent per year; the cumulative gap between them was Rs 450 billion for 2003–13. This has had a crippling effect on the already struggling financials of the utilities, the study says.“State financial support, which has become essential to keep many utilities afloat, has a high opportunity cost. Our study estimates that 15,000 hospitals and 123,000 schools could have been developed in 2011 if the power sector had not pre-empted these funds. Our recommendation is that states should compensate their utilities transparently and upfront if they are required to provide free or below cost power to specific consumer categories,” said Sudeshna Ghosh Banerjee, Senior Economist and co-author of the report.As noted above, More Power to India recommends that the sector develop a commercial orientation -- once there are clear signals of political will to run the sector in a commercial manner, with transparent subsidies going to only those who are eligible for such support, then day-to-day operations should be turned over to professional managers whose pay is linked to the performance of the utility, the study suggests.The study also highlights the need for better targeting of domestic subsidies. Lack of effective targeting of such subsidies has led to anomalies such as economically weaker sections of the population ending up paying more for consuming less power. In fact, in 2010 some 87 percent of the domestic electricity supplied India-wide was subsidized. Over half of subsidy payments (52 percent) India-wide went to the richest 40 percent of households in the country in 2010, the study adds.Other facets of sector performance highlighted by the study include:·Around 70 percent of the sector’s accumulated losses in 2013 came from the states of Uttar Pradesh, Rajasthan, Tamil Nadu, and Haryana. Uttar Pradesh alone accounted for 27 percent of the sector’s accumulated losses.·While grid connectivity has increased, over 200 million people without power live in “electrified” villages.·Today, it takes seven procedures and 67 days to get a power connection for a commercial establishment in India. In China it takes 28 days, in Thailand 35, and in Singapore 36 days.Key recommendations:· Support an increase in energy access through geo-spatial electrification planning that specifies grid and off-grid areas; create an attractive investment climate for standalone home system operators; and invest in harnessing large anchor loads and increase electricity use by small enterprises. · Increase capacity by investing in institutional capacity building. · Set up robust energy accounting and audit processes using management information systems, implementation of consumer indexing, and metering feeders.· Provide incentives to employees through Manpower Planning and Performance Management systems -- give performance linked incentive schemes to employees and prepare skill development plans.Link to the report: http://documents.worldbank.org/curated/en/2014/06/19703395/Media Contacts: World Bank, India: Nandita Roy 91-11-41479220 nroy@worldbank.orgFor more information about World Bank’s work in India, visit:India Website: http://www.worldbank.org/en/country/indiaWorld Bank India on Facebook: https://www.facebook.com/WorldBankIndiaTwitter: https://twitter.com/WorldBankIndiaFunding for the preparation of “More Power to India” was provided by the World Bank’s Energy Sector Management Assistance Program, Asia Sustainable and Alternative Energy Program, Trust Fund for Poverty and Social Impact Analysis and Australian Aid. 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WASHINGTON, February 27, 2015—The World Bank Group’s Board of Executive Directors today approved Euro 32.1 million in IBRD financing for the Health System Improvement Project in Albania. The total pro... Show More +ject cost is Euro 36.1 million, with the remainder co-financed by the Government of Albania. The project will support improving the efficiency of care in selected hospitals in Albania, improving the management of information in the health system, and increasing financial access to health services.Key health system performance indicators in Albania are mixed. While health outcomes are relatively strong by regional standards, quality of care is a significant concern. The sector suffers from inefficiencies and inequities. Out-of-pocket payments of patients accounts for more than half of total expenditures on health. With only half of the poor covered by social health insurance, increased health spending has pushed more households into poverty. Unofficial payments remain common, particularly in public hospitals.“The health sector reforms are complex, and there is still a large unfinished agenda,” said Tahseen Sayed, World Bank Country Manager for Albania. “Government has shown strong commitment to undertaking reforms in several key areas, including improving health financing systems and hospital services, pharmaceutical reforms, and expanding social health insurance. The new project will support the health sector reform agenda with the aim to improve access and efficiency of health care services.”The project builds on the World Bank’s past engagement in the health sector. The project activities will support reforming the hospital sector, improving monitoring and management of service quality and efficiency through the establishment of a health management information system, and reforming the health financing system, including assessing options to expand insurance coverage within the available fiscal space. “The main beneficiaries of the project include the overall population of Albania, who will benefit from improvements in the efficiency of hospital care services,” said Lorena Kostallari, World Bank Senior Operations Office and Project Leader. “By the end of the project life, it is expected to have a decrease in the total number of acute care beds by 800 beds in selected district hospitals, according to the Hospital Master Plan. As a result of pharmaceutical reform, a reduction by 25 percent in average prices for the 10 most common prescription medicines and the 10 most expensive hospital medicines is foreseen, which will positively influence on the financial protection from health expenditures. The project will enable an increase of health insurance coverage of up to 65 percent for the poor.”Moreover, specific population groups, including those with priority chronic diseases, will benefit from improved primary care and reduced co-payments for essential, low-cost medicines. This will reduce out-of-pocket payment expenditures. Health sector stakeholders will benefit from capacity-building as well – around 700 staff in public health institutions, including the University Hospital Center of Tirana (QSUT) and regional hospitals, will benefit from training and capacity-building activities.Since Albania joined the World Bank in 1991, a total of 84 projects comprising over US$2.1 billion of IDA credits and grants and IBRD loans have been provided to the country. Show Less -

Sydney Australia, February 27, 2015 – World Bank Vice President for East Asia and Pacific, Axel van Trotsenburg has today wrapped up a successful visit to the region where he discussed the World Bank’... Show More +s engagement with various partners and tabled the initial concept for a new regional report – Pacific Possible.“The past week has been an incredibly valuable trip which has afforded me the chance to speak directly with both development partners and beneficiaries of the many World Bank projects delivering for the Pacific,” van Trotsenburg said. “I’d like to take this opportunity to thank the countries for their warm hospitality.”Mr. van Trotsenburg and a small team of World Bank officials spent time in Australia and New Zealand to talk over continued partnership and the support of projects throughout the region. In Fiji the delegation met with Prime Minister Bainimarama and the Finance Minister to discuss the Bank’s re-launching of development programs in the nation, as well as the Pacific Islands Forum and the South Pacific Commission to discuss Pacific Possible.In Samoa and Tonga the delegation met with Prime Ministers Malielegaoi and Pohiva respectively to discuss ongoing projects, as well as the Chambers of Commerce for constructive feedback on Pacific Possible. A number of projects were also visited, including plant and livestock agriculture developments in Samoa, and post-cyclone home reconstruction on the island of Ha’apai in Tonga.“I make a deliberate effort to visit the Pacific Island countries when I come to the region”, van Trotsenburg said. “This was my first visit to Samoa, Fiji and Tonga and I have been impressed by each nation’s commitment to tangible, progressive reform agendas through sustainable development.”“The World Bank stands ready as long-term partner in action to continue its support for the Pacific region, and to help Governments to meet the objectives they’ve identified as priorities,” van Trotsenburg said.Mr. van Trotsenburg consulted with the public and private sectors on the concept of a planned report titled Pacific Possible that will analyze key development opportunities with significant potential for long-term impact. Some of the focus areas being considered include: tourism, ocean resources, knowledge economy, labor mobility, working together, and threats.“Pacific Possible was very well-received by both governments and the private sector during our concept consultations,” van Trotsenburg explained. “We’re pleased that the countries we’ve visited are keen to partner with us on this and capitalize on the World Bank’s extensive experience in using data and analysis to produce reports on development options to solve challenges facing countries and regions.”Mr. van Trotsenburg will return to his base in Washington D.C. later today. Show Less -

Sri Mulyani Indrawati will visit Manaus, Rio de Janeiro and BrasiliaBRASILIA, February 27, 2015 - Managing Director and Chief Operating Officer of the World Bank, Sri Mulyani Indrawati, will arrive in... Show More + Brazil on Saturday (28). This is her first visit to the country since she joined the World Bank in 2010. In a span of four days, she will visit the states of Amazonas, Rio de Janeiro and the Federal District, to learn the finer details of the work done by the World Bank in partnership with these states, with a special focus on gender and poverty reduction issues. Dr. Indrawati will also be meeting with national officials.“Brazil is an important member of the World Bank Group and a long-term partner in the fight against poverty. Brazil has made remarkable economic and social progress in the last decade. It lifted 25 million people out of poverty, built a stable economy and has met almost all millennium development goals”, said Sri Mulyani Indrawati, Managing Director of the World Bank. “My visit is an opportunity to see how Brazil can share its impressive lessons with other countries around the world. I also want to reinforce our role as a partner in supporting the government’s agenda and to help address the country’s remaining development challenges.”Formerly the Minister of Finance of Indonesia, Sri Mulyani Indrawati will begin her trip in Manaus, where she will visit Projeto Proconfins, a project aimed at improving urban infrastructure and education. The project is executed in partnership with the Government of the State of Amazonas and includes gender components, such as deploying and training police to address violence against women and mobile units that provide medical and legal assistance to victims of gender-based violence. She will also be meeting with government officials and representatives of the private sector in the state capital city of Manaus.The second leg of the trip will take Dr. Indrawati to Rio de Janeiro, where she will have an opportunity to visit SuperVia’s commuter rail system and meet students at Escola do Amanhã. She’ll attend the launch ceremony of Projeto Via Lilás, which brings together basic public services aimed at providing a better and safer commute to SuperVia’s female passengers. While in Rio, Dr. Indrawati will also meet with the president of the National Bank for Economic and Social Development (BNDES), Luciano Coutinho, and State Governor Luiz Fernando Pezão.Finally, the Managing Director will travel to Brasilia to meet with Federal Government officials, such as the Ministers of Finance Joaquim Levy; Planning, Nelson Barbosa; Environment, Izabella Teixeira; Social Development, Tereza Campello; and Central Bank President, Alexandre Tombini."The World Bank has supported the Government of Brazil in important initiatives to eradicate poverty and promote shared prosperity, through successful partnerships carried out over the course of 60+ years," states Deborah L. Wetzel, World Bank Country Director for Brazil. "Sri Mulyani's visit is taking place at a strategic juncture, as the country overhauls its action plan for the next four years. This will be a great opportunity for her to witness the outstanding results of this partnership."At the end of the trip, the Managing Director of the World Bank Group will attend a ceremony at the Chamber of Deputies to award the winner of a Hackathon. The first prize will go to the developer of an app that will help preventing violence against women and promoting citizenship.About Sri Mulyani Indrawati - As Managing Director and Chief Operating Officer at the World Bank Group, Sri Mulyani Indrawati is in charge of institution's operations around the world. Dr. Indrawati joined the World Bank in June 2010. She previously served as the Minister of Finance of Indonesia and Coordinating Minister of Economic Affairs. Prior to taking office at the Ministry of Finance, Dr. Indrawati led the Ministry of National Development Planning. Her previous positions include Executive Director of the International Monetary Fund, faculty member of the University of Indonesia and Visiting Professor at Georgia State University's Andrew Young School of Policy Studies. Dr. Indrawati holds a Ph.D. in Economics from the University of Illinois.For more information, visit: www.worldbank.org/br Visit us on Facebook: http://www.facebook.com/worldbank Get Twitter updates: http: //www.twitter.com/bancomundialbr Visit our YouTube channel: http://www.youtube.com/user/alcregion2010 Show Less -

Investment enhances Northern Mountains Poverty Reduction ProjectWASHINGTON, D.C., February 27, 2015—The World Bank’s Board of Executive Directors approved $100 million in additional financing for an o... Show More +ngoing project to help improve living standards for poor people in six provinces in Vietnam’s Northwest, the nation’s poorest region.The increased financing bolsters poverty reduction efforts by the Vietnamese government in the provinces of Hoa Binh, Son La, Dien Bien, Lai Chau, Lao Cai and Yen Bai.“We are very pleased to see this additional financing approved by our Board of Directors,” said Victoria Kwakwa, the World Bank’s Country Director in Vietnam. “The project areas have some of the highest rates of poverty, and most of the project beneficiaries are poor ethnic minority communities. We share the government of Vietnam’s strong desire to reduce poverty through the community-driven development approach embedded in this project, and we stand ready to work with the government to scale up the project’s successes.”The additional financing will contribute further to the government’s poverty reduction efforts by improving the capacity of local governments and communities, increasing access to investments that boost productivity, strengthening commune investment planning, and bolstering community links to markets and business innovations.In particular, the project focuses on expanding support for poverty reduction efforts in the six provinces where it started, as well as additional districts and communes.It also seeks to improve local development planning and help make a participatory approach part of the government’s national poverty reduction programs, with a focus on strengthening of partnerships between farmer groups and agro-businesses.The government of Vietnam is providing $10 million in financing in addition to the $100 million from the International Development Association (IDA), the World Bank Group’s concessional lending arm. Show Less -

Mohali, February 26, 2015: State governments in India need to give greater operational autonomy to their power utilities and regulators while holding them accountable for performance if the sector is ... Show More +to move to a higher level of service delivery, says a World Bank study.More Power to India: The Challenge of Distribution, presented in Mohali today is a review of the Indian power sector across key areas of access, utility performance, and financial sustainability. The study, conducted at the request of the Government of India, recommends freeing state utilities and regulators from political interference, increasing accountability, and enhancing competition in the sector. It calls for a transition from administratively run to commercially run utilities.The report notes that the landmark Electricity Act of 2003 put the spotlight on the need for improvements in the utilities’ operating environment – linking their corporate governance and the functioning of state regulators, to better sector performance. However, despite the unbundling and corporatization of State Electricity Boards and the establishment of State Electricity Regulatory Commissions (SERCs) following the Act, a commercial operational culture has still not been achieved across a wide set of state utilities nor have the concomitant improvements in sector performance that were anticipated resulted. Lack of accountability, limited autonomy and constrained technical capacity have restricted the ability of the SERCs to create an independent, transparent and unbiased framework for the sector that balances consumer, investor, and utility interests. Electricity regulatory commissions exist in all states, but they face enormous challenges in regulating the state owned power utilities. At the same time, even corporatized state power utilities have generally struggled to achieve true autonomy from their state governments with the end result that they are run as administrative entities, lacking a service orientation and continuing to operate inefficiently, the study says.More Power to India finds that operational and financial unbundling has still not been completed in many states, although this is necessary to clarify accountability in the sector. Experience shows that the stock exchange can be an effective monitoring and enforcement mechanism for sound governance of listed companies and a way of bringing about a commercial orientation. In its absence, the study suggests that state power utilities be required to comply with the requirements for listing as a pre-condition for central or other support. Among other aspects, this would ensure adequate representation of independent professionals as directors on their corporate boards, which is essential for their operations to be insulated from state interference. The report points out that only 15 percent of 67 utilities studied (across India) have the Department of Public Enterprises (DPE) recommended share of independent directors, and several entirely lack independent directors. As of 2014, neither Punjab nor Himachal utilities had any independent directors on their boards; government directors were more than two in Punjab, Himachal and Haryana (consistent with the DPE guidelines). The report also suggests that utilities’ Articles of Association can be used to institutionalize an arms-length relationship between the board and the government and points to West Bengal as an example of a state where this has worked well.More Power to India notes that regulatory initiative, including suo motu action, is essential to incentivize robust technical and financial performance of the sector. It underlines the need for clarifying and enhancing the accountability of regulators. It is also critical to increase key metrics of autonomy such as the share of regulators’ budgets that do not depend on the state and ensuring a minimum length of tenure for SERC chairman. The regulator needs enough professional staff and IT resources and greater transparency for improved public participation into the regulatory process. Data shows that regulators in Punjab and Haryana depend entirely on the state for their budget allocations, while Himachal Pradesh generates two-thirds of its budget from its own revenues. Average chairman tenure in Haryana is less than three years while it is five for Punjab and Himachal.The study reviewed SERC implementation of their mandates related to tariffs, protection of consumers, standards of performance, open access, renewable energy and regulations in selected areas. On an average, the states score 74 per cent on an index measuring implementation of regulatory mandates. Himachal is one of the higher ranked states on this index while Punjab and Haryana are below the average. The report caveats this finding saying that though most SERCs have notified the key regulations necessary to enact the Electricity Act 2003, many have yet to implement them fully.“The crux of the matter is that distribution utilities are not run on commercial lines. Despite corporatization, their boards remain state-dominated and are rarely evaluated on performance. Regulators have not pushed them sufficiently to improve performance, in part because of limited regulatory accountability and also the difficulty of regulating a state-owned entity. And a history of state rescues has meant that lenders do not pressure distributors to improve their operational and financial performance, expecting to be paid back by the state,” said Sheoli Pargal, Economic Advisor, World Bank and author of the report.While making an urgent call for change, the study recognizes the many impressive strides that the sector has made over the years. Generation capacity has tripled between 1991 and 2012, boosted by the substantial role played by the private sector. A state-of-the-art integrated transmission grid now serves the entire country. Private distribution utilities in Kolkata, Mumbai, Surat, and Ahmedabad, which have been owned and operated by the private sector since before Independence, point to potential gains from private participation. Grid-connected renewable capacity has risen from 18MW in 1990 to 25,856 MW in March 2013. And more than 28 million Indians have annually gained access to electricity between 2000 and 2010. However, according to the study, the financial health of the sector is fragile, limiting its ability to invest in delivering better services. Total accumulated losses in the sector stood at Rs 2.88 trillion or 3% of GDP in 2013. Over the last two decades the sector has needed periodic rescues from the central government -- a bailout of Rs 350 billion in 2001 and a ‘restructuring package’ of Rs 1.9 trillion that was announced in 2012.Several factors have contributed to the losses in the distribution sector, the report says. The cost to discoms of purchasing power has risen faster than revenues, primarily due to fuel shortages; rising interest expenses have contributed to rising costs; also, tariffs have not kept pace with costs. Projections show that even if tariffs rise 6 percent per year to keep up with the cost of supply, annual losses in 2017 will likely amount to Rs 1,253 billion (US$ 27 billion).Mounting Subsidies: High Opportunity Cost, Weak TargetingUtilities face pressure to provide below-cost power to agricultural and rural residential consumers for which they are reimbursed through subsidy payments by state governments. Since 2003, in fact, subsidies booked have grown by 17 percent per year, and subsidies received by 12 percent per year; the cumulative gap between them was Rs 450 billion for 2003–13. This has had a crippling effect on the already struggling financials of the utilities, the study says.“State financial support, which has become essential to keep many utilities afloat, has a high opportunity cost. Our study estimates that 15,000 hospitals and 123,000 schools could have been developed in 2011 if the power sector had not pre-empted these funds. Our recommendation is that states should compensate their utilities transparently and upfront if they are required to provide free or below cost power to specific consumer categories,” said Sudeshna Ghosh Banerjee, Senior Economist and co-author of the report. As noted above, More Power to India recommends that the sector develop a commercial orientation -- once there are clear signals of political will to run the sector in a commercial manner, with transparent subsidies going to only those who are eligible for such support, then day-to-day operations should be turned over to professional managers whose pay is linked to the performance of the utility, the study suggests.The study also highlights the need for better targeting of domestic subsidies. Lack of effective targeting of such subsidies has led to anomalies such as economically weaker sections of the population ending up paying more for consuming less power. In fact, in 2010 some 87 percent of the domestic electricity supplied India-wide was subsidized. Over half of subsidy payments (52 percent) India-wide went to the richest 40 percent of households in the country in 2010, the study adds.Key recommendations:· Utilities must be freed from government interference and their management professionalized so they develop a commercial service orientation.· Banks/lenders should hold utilities accountable for efficient operation and apply collective pressure to not lend to those that are not credit-worthy.· Regulators should go beyond the technical review of tariff petitions and focus on maintaining the health and integrity of the operations of the sector.· Central government should pledge no future bailouts, give regulators autonomy and adequate resources, and hold them accountable for their performance. It should also allow competition to create pressure for efficient operation.· State governments should pay subsidies transparently, fully, and on time, when they mandate free power supply. They should insist on evidence that the subsidies are going only to intended recipients.• Utilities need to improve operational efficiency, e.g., by tracking the delivery of power from purchase to delivery; ensuring that revenues are collected; facilitating payment of bills through different channels; ensuring that customer service issues are addressed in a timely manner; undertaking operations and maintenance activities routinely, etc. This is essential to ensuring their financial sustainability and that of the sector. Show Less -

DHAKA, February 26, 2015 —World Bank Vice President for the South Asia Region, Annette Dixon, pledged strong support for the people of Bangladesh to achieve the goal of becoming a middle-income ... Show More +country by the end of this decade.“Bangladesh is recognized globally for making remarkable progress in reducing poverty and advancing human development. Other countries can learn from Bangladesh’s rich development experience,” said Dixon as she concluded her first visit to Bangladesh since her appointment as a World Bank Vice President in December 2014.“The World Bank remains committed to working with Bangladesh to reduce poverty and bring prosperity to all Bangladeshis. The World Bank has already approved more than $1 billion in new financing this fiscal year to improve primary education, child nutrition, and resilience to natural disasters. We are on track to deliver to deliver a total of nearly $2 billion by the end of June,” she added.Dixon met with senior government officials, including the Finance Minister and the Governor of Bangladesh Bank, and discussed how World Bank support can be best aligned with the country’s priorities. She also met civil society and private sector leaders and development partners. Dixon also visited the Export Processing Zone in Chittagong and a Government health facility in Dhaka.“The World Bank is keen to support Bangladesh in achieving its vision of becoming a middle-income country. For this to happen, Bangladesh needs to do more to narrow the power and transportation gaps, manage urbanization, reduce climate change impacts, and also improve the business environment, public service delivery and governance. Going forward, the World Bank will help Bangladesh to clear bottlenecks that impede faster growth and to connect to regional and global markets. ” Dixon said.The World Bank is the largest development partner of Bangladesh, committing more than $19 billion in interest-free IDA credits to advance Bangladesh’s development priorities since the country’s independence. The current IDA portfolio consists of 32 projects, with a total commitment of $7.5 billion. The World Bank Group’s private sector arm, the International Finance Corporation (IFC) has a portfolio 35 projects with investment commitments of $668 million. The World Bank Group’s arm for promoting foreign direct investment, the Multilateral Investment Guarantee Agency (MIGA), has a portfolio of one active project with a total guarantee amount of US$251 million. Show Less -

PRISHTINA, February 26, 2015 – Unleashing development opportunities in rural Kosovo requires access to communication infrastructure and information. In this vein, the World Bank and the Ministry of Ec... Show More +onomic Development of Kosovo have officially launched the first phase of a grant-financed technical assistance project entitled “Innovative and Green Growth for Rural Areas of Kosovo”, aimed at providing an analytical foundation for the extension of broadband Internet infrastructure to currently underserved rural municipalities of Kosovo, creating a sustainable platform for innovative and green growth.It is those rural municipalities in Kosovo with the highest concentration of poor households (the part of the population which is below 40 percent of income in Kosovo) who are also suffering from a lack of reliable and affordable broadband Internet infrastructure. According to government estimates, 43 percent of rural households are currently unconnected to the broadband, and one-third of these households—without an all-inclusive intervention—are unlikely to be connected to the network anytime soon.To this end, the conducted activity is directly aligned with the Kosovo Information Communication Technology sector strategy “The Electronic Communication Sector Policy – Digital Agenda for Kosova 2013–2020”, which establishes coverage and broadband Internet speed goals that must be achieved at the per-capita and household level. In particular, this activity will result in:A broadband market study, analyzing the current broadband demand and forecast on a municipality level for 2015-2020;A technical analysis of existing broadband infrastructure, dimensioning, and an assessment of infrastructure deployment initiatives for universalization of broadband access, including an accompanying sensitivity analysis;A financial analysis that will estimate the deployment investment and operating costs for each part of the network per type of technology; andA set of recommendations concerning the viability of private-public partnerships as a way to address low connectivity in the selected underserved municipalities.“Low availability of broadband connectivity holds back not only development of the local telecom and Information Technology sector, but also the arrival of multiple benefits associated with Information Communication Technologies and ICT-enabled green growth, such as regional economic integration, online employment generation, development of smart infrastructure, and optimization of public service delivery through e-services,” said Agim Kukaj, the Head of Post, Telecommunications, Information and Communication Technology Department of the Ministry of Economic Development of Kosovo. “What is also important to note is that in contrast to the European Union, Kosovo has a significantly higher share of rural and youth population: the majority of our population is rural and over one-third is 18 years old or younger. It is evident that by extending broadband Internet to the rural areas, the government will unfold new opportunities—in particular, for the youth—which tends to be more technologically savvy than other age groups. These opportunities will entail job creation through ICTs and skills development, both of which are essential for increasing the country’s competitiveness.”The underserved rural municipalities either have isolated settlements and low population density or are located in mountainous terrain. The experience of over more than a decade of worldwide internet access infrastructure rollout proves that the deployment costs of setting up broadband connections in such challenging geographical areas are multiple times those in urban areas. Even if such deployment does take place, the cost of the broadband service is usually not affordable for the rural, often relatively poorer population. Without well-crafted government interventions in rural areas, which include the use of public funds, the universality of broadband service cannot be achieved.“The Government of Kosovo took an important step in identifying where exactly the connectivity access gaps lie and how best to address them from technological and financial perspectives,” added Natalija Gelvanovska, Senior Information Communication Technology Policy Specialist at the World Bank. “Across developing countries, telecommunications data on rural broadband availability is neither systematically collected, nor analyzed by any government. Because of these ‘white spots’, it is often challenging to determine precise broadband coverage, dynamics of the coverage and pricing development, and, most importantly, to understand how to bridge the connectivity gaps leveraging private and public funding. A proper analysis of access infrastructure gaps is, therefore, instrumental in designing the right type of policies and action plans for the benefit of the unconnected population. We are happy to bring to Kosovo the best international practices in telecom and ICT from the region (the EU) and recognized global leaders such as, for instance, Korea.”This activity is financed through the Korea Green Growth Trust Fund until end-December 2015, and is the second World Bank technical assistance to Kosovo in the telecommunications sector. The first technical assistance, “Facilitation of Efficient Infrastructure Sharing”, launched on January 5, 2015, is dedicated to the commercialization of fiber optic assets owned by the electricity utility KOSTT J.S.C. for the possible benefit of Internet Service Providers without their own broadband infrastructure, as well as the population that is currently underserved with access to high-speed connectivity. Show Less -

About 2.6 million residents of Sughd Oblast will have better access to markets and more job opportunitiesWASHINGTON, February 25, 2015 – The World Bank Group’s Board of Executive Directors today appro... Show More +ved an allocation of US$45 million equivalent to finance the second phase of the transformative Central Asia Road Links Program, to be implemented in Tajikistan in 2015-2020. The objective of this project is to increase transport connectivity between Tajikistan and neighboring countries along key cross-border road links in Sughd Oblast, and thus connect people and firms, markets and opportunities, regionally.The Central Asia Road Links (CARs) Program is a collaborative regional, multi-phase program initiated by governments of Central Asia. The program aims to increase transport connectivity between neighboring countries while supporting improvements in road operations and maintenance practices. The first phase of the CARs, covering the Kyrgyz Republic, focuses on the rehabilitation of cross-border road links bordering Tajikistan in Batken Oblast.This Second Phase of the Central Asia Road Links Program – CARs-2 will focus on the rehabilitation of approximately 70 kilometers of cross-border road sections in Sughd Oblast connecting Tajikistan’s road network with that of Uzbekistan and the Kyrgyz Republic. Specifically, the road sections to be rehabilitated include: Kuchkak-Kim-Isfara-Guliston border crossing (45.1 km), Dehmoi-Proletarsk-Madaniyat border crossing (16.9 km), including a link to the intermodal rail terminal in Proletarsk, and Kanibadam-Patar border crossing (5.7 km).“Tajikistan is Central Asia’s least connected, most isolated country, with only limited regional and international connectivity, where road transport is often the only option given the alpine topography and small rail network,” said Patricia Veevers-Carter, World Bank Country Manager for Tajikistan. “By financing the rehabilitation of cross-border road links in Sughd Oblast, which accounts for 40 percent of the country’s overall freight turnover, the project will expand opportunities for trade and increase the competitiveness of domestic products, leading to private sector growth and job creation.”In addition to rehabilitation work, the project will support the Ministry of Transport of Tajikistan in improvement of road operations and asset management practices. This will include: support in developing Transport Sector Development Strategy up to 2050, reviewing the technical standards, norms and parameters on vehicle weight, axle load limits and tariffication, as well as developing a strategic plan for the implementation of the axle load control systems. On asset management, the project will finance a survey equipment (including geo-references) and provide support for the final deployment of a road asset management system in the Ministry of Transport to help address the problem of overloaded of trucks.The CARs-2 project will be implemented over five years by the Ministry of Transport of Tajikistan. The World Bank’s total contribution of US$45 million equivalent consists of US$38.25 million provided as a highly concessional credit, and US$6.75 million as a grant. The Government of Tajikistan provided co-financing in the amount of US$9 million. It is estimated that the project will directly benefit about 2.6 million residents of Sughd Oblast who are expected to be regular road users travelling along the road sections.The World Bank Group’s active portfolio in Tajikistan includes 12 projects totaling US$185.1 million that aim to support economic growth through private sector development, while investing in better public services for people, such as education, health, municipal services and social protection. Since 1996, the World Bank has provided US$978 million in grants and highly concessional credits from the International Development Association and trust fund resources to Tajikistan.The World Bank Group is committed to continue supporting Tajikistan as it strives to improve the lives of its people and meet the aspirations of its young and growing population. Show Less -

TUNIS February 25, 2015 – The World Bank and Tunisia’s Ministry of Finance organized a two-day an orientation workshop this week entitled “Advancing Public Participation in the Budget Process—Linking ... Show More +Budget Analysis to Service Delivery Outcomes”. The training aimed to empower civil society and improve accountability by addressing the institutional bottlenecks and capacity gaps suffered by its stakeholders. With greater budget transparency worldwide, new opportunities have emerged for broader, more effective public participation to help influence budgetary outcomes. Budgets are key documents that lay out a government’s priorities in terms of policies and programs. Democratizing the budget process gives citizens a say in both policy and resource allocation, particularly at local levels. Budget transparency is a prerequisite for public participation and accountability.“Establishing a budget from a revenue perspective is essential” said Mrs. Olfa Soukri, parliamentarian and rapporteur to the finance committee within the House of People’s Representatives. “Citizens need to be able to access budget details per project and ministry but more importantly per region, governorate and district.”In the aftermath of the 2011 revolution, Tunisia has seen an impressive increase in civil society organizations covering a multitude of sectors including fiscal transparency, access to financial information, local budget monitoring, and budget analyses. The activities of these societies range from monitoring how funds are allocated and spent from the grassroots to national levels. Tunisia has joined the Open Government Partnership (OGP) and listed disclosure of budget information as key to its OGP action plan.Eileen Murray, Resident Representative at the World Bank office in Tunis, opened the workshop, saying Tunisia was to be one of the first countries in the region to make budget data available to the public in user friendly formats. “The World Bank is very pleased to have had the opportunity to support the Ministry of Finance in this initiative for the development of the Tunisia Open Budget Portal,” she said. The portal will allow the public free access to budget data through the Ministry of Finance official webpage.This training workshop was also seen as a first step towards supporting an open government initiative in a decentralized government environment. It aimed to contribute toward creating foundations for citizen engagement in the decentralization process, and to encourage debate in forthcoming local elections. The objective was also to expand the capacity of Think Tanks and Civil Society Organizations working on issues related to fiscal transparency. Transparency mechanisms include using existing data on budget allocation and expenditure; understanding key entry points for budget analysis to help motivate social accountability; knowing how to present and disseminate such analysis in an user friendly format using “budget briefs”; and becoming “enablers of public dialogue” by learning how to argue for improvement.Mrs Aicha Karafi, Director General and the Ministry of Finance representative to the OGP pilot finance committee highlighted "The development of the Open Budget Platform and putting it online contributed to the achievement of the ministry’s financial transparency policy and constitutes a key commitment for Tunisia’s OGP action plan” .In addition to the governance program, the World Bank Group has a Development Policy Loan series and a portfolio of 22 investment and technical assistance operations in Tunisia. This includes 10 loans for about US$1 billion and 12 grants for $51 million focused on water and sanitation, wastewater, decentralization, financing for micro, small, and medium enterprises, higher education and rural development in underdeveloped regions. Show Less -

WASHINGTON, February 25, 2015—This month, the World Bank Group announced the debarment of four companies involved in misconduct relating to projects in Bolivia, Bangladesh and Cambodia. The deba... Show More +rments were announced by the Sanctions Board following investigations by the World Bank’s Integrity Vice Presidency (INT).In Bolivia, Empresa Constructora y Consultora LAPTUS S.R.L. and Ingenieria en Construcciónes Orleans (ICOR) were each debarred for a minimum of two years. Both debarments were based on an INT investigation that arose after being notified by the Project Implementation Units (PIUs) of possible fraud. INT’s evidence revealed that each company had submitted fraudulent performance securities during the bid process intended to provide financial security to the project in case of non-performance. As a result of delays in project implementation by ICOR, the PIU attempted to enforce the bid securities to cover its losses and discovered the securities were fraudulent. The case was also referred to the Bolivian prosecutor’s office for their subsequent action. “The debarment of these companies under the same project gives a sense of what a high-risk operation can look like. More importantly, without the due diligence of the Project Implementation Unit, the World Bank investigators and national enforcement entities, this case could have resulted in huge losses of development resources,” said Leonard McCarthy, World Bank Integrity Vice President.The World Bank Sanctions Board also debarred Globe Pharmaceuticals Ltd (Globe) for three years following evidence of fraud under the Bangladesh Health Sector Development Program. The company submitted false “prior experience” certificates in its bid to qualify for a World Bank-financed contract to supply Vitamin A capsules.Finally, in Cambodia, Seng Enterprise Co., Ltd was debarred for a period of three years for engaging in corrupt practices. The company paid bribes to officials, on behalf of a consortium, in order to be awarded a World Bank-financed contract under the Rural Electrification and Transmission Project. Evidence also revealed the company had solicited funds from another consortium member firm to help pay for the bribes.Under the terms of the above sanctions, all four companies must take appropriate remedial measures, adopt and implement an effective integrity compliance program consistent with the World Bank Integrity Compliance principles. During the debarment period, the companies are ineligible to be awarded contracts under any Bank Group-financed or Bank Group-executed project or otherwise participate in the preparation or implementation of such projects.The debarment of these companies qualifies for cross-debarment by other multilateral development banks under the Agreement of Mutual Recognition of Debarments that was signed on April 9, 2010. Show Less -

New opportunities for Pacific collaboration discussedNuku’alofa, Tonga, February 25, 2015 – Prime Minister Hon. ‘Akilisi Pohiva and World Bank Vice President for East Asia and Pacific Axel van Trotsen... Show More +burg will meet Wednesday to discuss existing development activities and new partnership opportunities, then attend a full Cabinet reception in Parliament.Mr. van Trotsenburg and a team of World Bank officials will also meet with senior Cabinet ministers and visit reconstruction projects in Ha’apai.On Thursday, Mr. van Trotsenburg will attend a breakfast with the Chamber of Commerce and Industry, as well as senior government and NGO representatives and journalists. Mr. van Trotsenburg will also visit the landing site of the 826-kilometer fibre optic cable connecting Tonga to Fiji.“This trip reinforces our steadfast dedication to long-term and robust development in the Pacific, including in Tonga,” van Trotsenburg said. “Today’s meeting is part of an ongoing conversation and partnership between the government of Tonga and the World Bank, and I look forward to seeing how we can deepen our support for the people of Tonga and the country’s ambitious development goals.”The World Bank currently has a portfolio of six active projects for a total commitment of $91.6 million (including co-financing and trust fund contributions) in Tonga. The projects support development in information communication technology, public financial management, resilience to climate change and natural disasters, maritime and roads infrastructure, aviation and education.“Tonga welcomes Mr. van Trotsenburg and the World Bank delegation,” Pohiva said. “I look forward to showing Mr van Trotsenburg all that Tonga has to offer and discussing opportunities for the World Bank’s current and future engagement in Tonga to reach its optimum development potential.”The visit also will provide an opportunity for Mr. van Trotsenburg to consult on a planned report titled Pacific Possible that will analyze key development opportunities with significant potential for long-term and robust impact. The project covers six focus areas: tourism, ocean resources, the knowledge economy, labor mobility, working together, and threats.Pacific Possible will examine the potential increases in income and living standards that could be achieved through regional policies supported by Pacific Island countries, along with partners around the broader Pacific Rim including: Australia, Japan, Korea and others.“Pacific Possible aims to provide sustainable recommendations that can deliver transformational differences to smaller Pacific Island countries such as Tonga,” van Trotsenburg explained. “The World Bank has a strong history throughout East Asia of providing valuable inputs for the big development challenges in countries including China and Vietnam. The World Bank has experience at using data and analysis to develop beneficial policy opportunities for countries – Pacific Possible aims to do the same for Pacific Island nations.” Show Less -